Short answer: in most cases, no. It would be rare for you to receive jail or prison time simply for owing money in Canada.
Unpaid debts are generally considered a civil matter, not a criminal one. That means creditors must pursue collection through legal processes like demand letters, negotiations, or lawsuits and not criminal charges. The ultimate recourse of a creditor is to petition a debtor into bankruptcy which, although not ideal for a debtor, is not the same thing as serving a criminal charge.
If a creditor sues you and wins, they may obtain a judgment. With that judgment, they can attempt enforcement methods such as garnishing wages, freezing bank accounts, or registering liens against property. These remedies are designed to recover money.
But, sometimes there are stories about “going to jail for debt.” This confusion usually comes from a contempt of court charge. For example, if a court orders you to attend an examination, disclose financial information, or comply with enforcement proceedings and you do not follow those orders then yes, a judge could actually impose penalities on you because you are flagrantly ignoring the law including jail time in extreme cases. This would be because you are ignoring court orders and not just because you owe a debt.
There are also rare situations involving fraud (such as knowingly writing bad cheques or misrepresenting assets) where criminal consequences may apply. But, again, that’s about dishonest conduct, not ordinary debt.
If you’re struggling financially, you still have options: negotiating payment plans, disputing improper claims, or exploring insolvency remedies like consumer proposals or bankruptcy. The bottom line is that owing money does not make you a criminal. If you’re facing aggressive collection or legal action, getting proper legal guidance early can help protect your rights and often reduce the damage.